Correlation Between Fidelity Capital and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital and Credit Suisse at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidelity Capital and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Capital Income and Credit Suisse Floating, you can compare the effects of market volatilities on Fidelity Capital and Credit Suisse and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidelity Capital with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Credit Suisse.
Diversification Opportunities for Fidelity Capital and Credit Suisse
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Credit is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating and Fidelity Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fidelity Capital Income are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Floating has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Credit Suisse go up and down completely randomly.
Pair Corralation between Fidelity Capital and Credit Suisse
Assuming the 90 days horizon Fidelity Capital Income is expected to generate 1.68 times more return on investment than Credit Suisse. However, Fidelity Capital is 1.68 times more volatile than Credit Suisse Floating. It trades about 0.14 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.2 per unit of risk. If you would invest 814.00 in Fidelity Capital Income on December 4, 2024 and sell it today you would earn a total of 198.00 from holding Fidelity Capital Income or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Fidelity Capital Income vs. Credit Suisse Floating
Performance |
| Timeline |
| Fidelity Capital Income |
| Credit Suisse Floating |
Fidelity Capital and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Credit Suisse
The main advantage of trading using opposite Fidelity Capital and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital position performs unexpectedly, Credit Suisse can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Fidelity Capital vs. Fidelity High Income | Fidelity Capital vs. Fidelity New Markets | Fidelity Capital vs. Fidelity Total Bond | Fidelity Capital vs. Fidelity Balanced Fund |
| Credit Suisse vs. Nexpoint Real Estate | Credit Suisse vs. Real Estate Ultrasector | Credit Suisse vs. Nomura Real Estate | Credit Suisse vs. Tiaa Cref Real Estate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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